How do changes to Ontario’s Construction Lien Act affect you?

TORONTO – On June 1stBorden Ladner Gervais LLP (BLG) announced that the Ontario government is modernizing its Construction Laws following the expert review of Ontario’s Construction Lien Act conducted by Bruce Reynolds, leader of BLG’s International Construction Projects Group, and Sharon Vogel, national leader of BLG’s Construction Group.

Attorney General Yasir Naqvi introduced legislation May 31st that would, if passed, modernize the lien and holdback process, introduce needed rules to ensure Ontario construction workers get paid, on time, for the work they do, and make the dispute resolution process faster and simpler.

Construction law experts Reynolds and Vogel led a thorough and comprehensive review of the Construction Lien Act. The proposed legislation is based on the recommendations in the report and feedback from experts and industry groups.

Bruce and Sharon said: “Our work on the report, Striking the Balance, and our subsequent work on the bill, has been directed towards improving the flow of funds on construction projects in Ontario. Over the past two years, we have worked closely with the government and industry groups to provide advice that captures the key concerns of the many people who work in this important sector. We are very pleased with the introduction of the bill and look forward to the availability of innovations such as promptness of payment and dispute resolution through adjudication.”

If passed, the legislative and regulatory changes would come into effect in 2018.

Quick Q&A with Sharon Vogel

Q – What are the key proposed changes to Ontario’s Construction Lien Act?

A – The key changes relate to modernization of the Act, promptness of payment, and adjudication as described in the press release.

Q – How would the new proposed measures impact the construction sector in Ontario?

A – They are intended to expedite the flow of funds on construction projects and improve the efficiency of dispute resolution.

Q – What’s the possibility of other provinces following Ontario’s move to change their construction laws?

A – There has been significant interest in the developments in Ontario and we anticipate that other jurisdictions may well follow Ontario’s lead as Bill 142 introduces innovative reform.